LUXEMBOURG

Photo by: jorisvo

Grand Duchy of Luxembourg

Grand-Duché de Luxembourg

Grossherzogtum Luxemburg

COUNTRY OVERVIEW

LOCATION AND SIZE.

Luxembourg is a landlocked nation in Western Europe, at the intersection
of Belgium, France, and Germany. It is one of the smallest nations in
the world with an area of 2,586 square kilometers (998 square miles),
which makes it slightly smaller than Rhode Island. The nation has 359
kilometers (223 miles) of borders, including 148 kilometers (92 miles)
with Belgium, 73 kilometers (45 miles) with France, and 138 kilometers
(86 miles) with Germany. Luxembourg, the capital, is in the southern
region of the country. The nation's second and third largest
cities, Esch-Alzette and Differ-dange, are in the southwest.

POPULATION.

In July of 2000, the population of Luxembourg was estimated to be
437,389. While the overall fertility rate is below replacement levels
(1.7 children per woman, or 12.45 births per 1,000 people), the
population continues to grow because of
immigration
. There were 9.21 immigrants per 1,000 inhabitants in 2000. The death
rate was 8.91 deaths per 1,000. In 2000, the population growth rate was
1.27 percent because of the influx of refugees and immigrant workers.

Immigration has been encouraged because of the need for workers. As much
as 35 percent of the population is foreign, which gives the nation a
higher proportion of foreigners than any other European country. The
government has implemented different programs to integrate foreign
residents into society. For instance, foreigners with resident status
have the right to vote and run for office in municipal elections and may
be employed in
public sector
jobs. Given the aging population, the need for workers continues. About
14 percent of Luxembourgers are over the age of 65, while 19 percent are
14 or younger. Average life expectancy is 73.8 years for males and 80.6
years for women. Besides
guest workers
, Luxembourg has also opened its borders to refugees. In 1998, there
were 4,548 refugees in the nation, making up just over 1 percent of the
population. Many of these refugees came from the former Yugoslavia. As
the conflicts in the Balkans subside and refugees return home,
population growth is expected to stabilize. However, the continuing need
for workers will bring a corresponding growth in the population, which
is expected to reach 700,000 by 2025.

Most Luxembourgers are descended from Celtic stock, with German and
French influences. The largest minority group is the Portuguese, who
account for 13 percent of the population. There are also significant
numbers of Italians and other southern Europeans. Most people live in
the southwest, and two-thirds of the population are urban. During the
20th century there was increasing migration from the countryside to
urban areas. The population of the capital is 76,440, while 24,255 live
in the

second largest city, Esch-Alzette. To maintain the declining rural
population, the government has relocated some industries to the
countryside. The Luxembourg language is an amalgamation of German and
French, with French also used for official purposes and German—
which is commonly spoken—as the language of the press. English is
also widely used.

COMMUNICATIONS.

With a superb communications infrastructure providing a strong platform
for new information technologies, Luxembourg is a major communications
center. The company, Europe-Online, was an early Internet service in
Europe. The company offers multimedia services to consumers throughout
Europe. The government has adopted new regulations, including rules for
online shopping, to protect consumers who do business on the Internet.

With support from the government, the communications company, SES,
operates ASTRA satellites. The first satellite, launched in 1991,
provided television programming for 32 million homes in Europe. The
launch of 8 subsequent satellites expanded the coverage to over 74
million homes, bringing a corresponding expansion of television
broadcasts. The satellites also transmit 39 different radio programs. By
1999, the ASTRA satellites had captured 83.4 percent of Europe's
satellite and cable market. Profits from SES exceed 4 billion francs
annually.

The government began several investment incentives to promote the
audiovisual sector, leading to rapid expansion in the field, which now
employs 750 people in production companies. However, the real growth in
this sector has been the commercial broadcasting company, CLT. From 1989
to 1994, the revenue of CLT tripled to 82 billion francs per year, and
revenues have continued to increase by over 20 percent per year. The CLT
group owns 12 television channels and 12 radio stations, and employs
3,089 people. A 1999 merger between CLT and the German media giant,
Bertelsmann, created Europe's largest television and radio group,
CLT-UFA. The combined company has also created an alliance with the Walt
Disney Corporation.

RETAIL.

There are 5,300 trade and
retail
sales enterprises in Luxembourg, employing 31,000 people. Retail
businesses have taken advantage of the Grand Duchy's lower tax
rate to attract buyers from neighboring countries. There are 2 major
chain stores, Cactus and Match, and 60 other supermarkets.

TOURISM.

Luxembourg has 2,350 hotels and restaurants, employing 11,000 people.
Hotels declined by 70 in the 1990s, but total room numbers increased by
328 as hotel chains have built larger units. About 2 million tourists
visit Luxembourg annually. But about half of these stay at campsites
around the nation. The largest number of visitors come from the
Netherlands, followed by Belgium, Germany, France, and the United
Kingdom.

CAPITAL:

Luxembourg.

MONETARY UNIT:

Luxembourg franc (LUF). One franc equals 100 centimes. There are coins
of 25 and 50 centimes and 1, 5, 10, and 20 francs. There are notes of 50
and 100 francs. Belgian currency is also legal tender in Luxembourg, and
bills of 500, 1,000, and 5,000 Belgian francs also circulate. On 1
January 1999 the European Union began using the euro for non-currency
financial transactions, and euro-denominated coins and notes will
replace the franc as the currency in 2002.

User Contributions:

while i was stationed in france with the us air force, i visited luxembourg many times. i trully enjoyed my time there. i believe i would have made my home there after being separated for the us military but, i had too many commitments back home. however, if i ever get the chance to go back there i certainly will. love the country and the people. jr

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